Can I work with landlords who have done evictions on their properties and want to collect on their debt?
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Can I work with landlords who have done evictions on their properties and want to collect on their debt?
Where I find these landlords, set them up with a collection company, the collection company would pay me once a debt has been collected, minus their fees, (because the landlords have signed to have this paid in this way). I receive the full payment, take out my funds for setting everything up with the collections company, including doing the paperwork needed to start the collection. I then send the remaining amount of the funds owed to the landlord. This is all signed and in writing with the owner/landlord of the property.
Asked on September 26, 2012 under Bankruptcy Law, Georgia
Answers:
B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Even though you are not collecting the debt, you are essentially brokering the debt collection process. You're offering a service to facilitate the collection of a debt. You can do this if you have a contract that authorizes you to do so. However, since the activities that you are describing are technically those of a third party debt collector, make sure that you are aware of the rules regarding debt collection in all of the states that you intend to collect in. You may also be required to register with the secretary of state in your state and post a bond because you are engaging in debt collection activities.
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